Preparing Your Mortgage Loan Application
Verifying Down Payment, Closing Costs, Assets, Income and Debts
A critical step in the mortgage loan application process is to verify the sources for your down payment, closing costs and assets, as well as documenting income and debts. The lender uses this step to determine your qualifications as a borrower.
Down Payment & Closing Costs
Documenting that the down payment comes from your savings and that you will have savings and/or assets over and above the down payment gives the lender confidence in your strength as a borrower and your ability to repay the loan.
Take extra care to document the sources for any monies to be used for the down payment or closing costs.
Acceptable Down Payment & Closing Costs Sources
- Cash in a bank account
- Mutual funds / stocks / IRA / 401(K)
- Proceeds from the sale of another property
- Gift from an immediate relative
Collect information about your personal assets that add to your net worth and help to prove your credit worthiness.
Common Assets Considered in a Mortgage Loan Application
- Stocks, bonds, mutual funds, 401(K) and retirement accounts
- Life insurance
- Personal property estimate – cars, boats, antiques, jewelry, etc.
- Other real estate or property
Please note, when providing online statements that they must contain the following information: Your Name, Bank’s name and Account number. It is usually best when providing online statements to get the .pdf version- you want an electronic copy of the actual statement you get in the mail